Abstract: This paper examines the major reasons for subsidized child care receipt among current and former welfare recipients in Harris County, Texas, between mid-1995 and mid-1999. For the most part, poor people receive subsidized child care because of either employment or engagement in workforce development activities. The time period of the study was chosen so that significant periods before and after welfare reform could be observed. The welfare reforms that were enacted during this period included the Federal Personal Responsibility and Work Opportunity Act (PRWORA) legislation and the Texas legislation that resulted in the state’s welfare waiver, known as the “Achieving Change for Texans” (ACT) waiver. This document reports on the estimation of a statistical model developed to determine the factors associated with the likelihood of employment (as opposed to training) as well as earnings, for recipients of subsidized child care who were current or former welfare clients.